The JSE was little changed on Wednesday morning, with its global peers mixed as investors await the outcome of the US Federal Reserve policy meeting later.
The outcome of the latest meeting of the US federal open market committee (FOMC), which started on Tuesday, is due later today.
Markets expect policymakers to keep interest rates unchanged, despite inflation still exceeding the central bank’s target range and the US economy proving more resilient than anticipated. Still, analysts see a possibility of one more rate hike in the coming policy meetings.
“The main focus today is on the FOMC decision later today, with traders still sitting on the sidelines,” TreasuryOne currency strategist Andre Cilliers said in a release. “Markets see the Fed keeping rates unchanged as a foregone conclusion, so Jerome Powell’s press conference will determine market moves tonight after the meeting.”
“The US economy and labour market remain robust. At the same time, inflation pressures are once again increasing [as oil prices increase], making it likely that Powell will keep to a higher-for-longer restrictive policy, which will remain data dependent,” Cilliers said.
At 10.20am, the JSE all share and the top 40 were little changed, with the former at 73,825.54 points. Food producers had gained 0.68%, banks 0.66%, retailers 0.61%, financials 0.35% and SA listed property 0.29% Precious metals had lost 0.69%, resources 0.26% and industrial metals 0.15%
In Europe, France’s CAC 40 had added 0.34% and Germany’s DAX 0.6%.
In Asia, the Shanghai Composite was down 0.52%, Hong Kong’s Hang Seng 0.53% and Japan’s Nikkei 0.66%.
On the local front, consumer inflation data came in line with consensus estimates at 4.8% year on year. The core inflation figure, which omits food and energy prices, also came in at 4.8% year on year.
The Reserve Bank’s monetary policy committee is widely expected to keep interest rates unchanged on Thursday, but remain hawkish amid concern about an uptick in inflation on the higher oil price.
At 10.18am, the rand had weakened 0.23% to R18.9661/$ and 0.37% to R20.2786/€, while it was little changed at R23.4333/£. The euro was 0.13% firmer at $1.0692.
Gold was unchanged at $1,930/oz, while platinum gained 0.29% to $945.73/oz. Brent crude was 1.68% weaker at $92.81 a barrel.
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